Shirlee Zerkel re: STRS Health Care Discussion 2/20/09

From Shirlee Zerkel, February 27, 2009
Subject: We, the retirees are going to pay!
The upper level staff have been working on this health care material for some time -- but they did not see the need to do something about their own benefits, and bonuses spent on the investment staff! THAT SHOULD ALL WORK INTO THE PICTURE TOO.

I can not see Scenario 1 or 3 being good for the system or retirees at all, but number 2 has many negatives.

Why is it always the retirees who suffer the most. We are the reason they have jobs. It is the taxpayer in each school district and our hard earned dollars, they are spending, but we always get the first cuts.

Some things as I interpret them:

The '09 changes that will hurt are elimination of open enrollment for new entrants. Does that mean if you did not opt for STRS insurance when you retired that you can no longer get in?

I also wonder what retiree who retires when he/she is 52 with 30 years is going to do for insurance for 10 years?

Does the Rx column on page 4 mean that a retiree pays shipping on their medication they order or just pay for the stamp to re-order?

On page 4, It looks like all who do not use STRS insurance and are Medicare age will not receive a reimbursement. Many will take a hit here! (ARE THEY TRYING TO FORCE US TO STAY SO THEY CAN USE OUR PREMIUM MONEY, WE GET NO BENEFITS FROM IT unless we have really major illnesses. THAT'S FOR SURE!)

Also on page 4 and in 2010 concerning eligibility many retirees could get whacked here as well, if they have bought teaching time and it counted for where they fall on the pension and healthcare charts. For example, I worked in private schools also and bought that time. Am I going to lose it and have to pay a higher premium for my STRS insurance.

Under Subsidy on page 4, I see bigger premiums for us anyway you look at their choices.

On page 5, I see they still plan to offer the Medicare Advantage plan in 2010. Also, they plan to DOUBLE the DEDUCTIBLE for those on the plus plan. and increase the out of pocket. (NICE move)

Nice copays added for ER and inpatient stays.

Too bad for us when we need X-rays/scans in a hurry for now all such tests need a precert.

On page 6, it looks like in 2010, we will also have a drug deductible of$150 and no out of pocket limit.

It also appears to me that they are going to limit what retail pharmacies we can go to!

Rx changes are not good for retiree needs.

Page 7 and year 2011, penalties for late enrollment for members.

Page 7 and year 2012 retirees can't get STRS insurance till you are 62.

Page 7 and year 2012 STRS willnot cover RX for those on Medicare. We would have to buy a Medicare D policy from another source. Those retiees who get to stay will see another increase in Rx costs.

In 2013 on page 8, oh, look, the part that STRS pays for the retirees' health plan goes down and our premiums go up. The subsidies will also be figured on a different base.

And in 2014, Members on Medicare will be kicked out of the STRS Health Care Plan. What will the retirees who only have Medicare B and depend on STRS for their Part A coverage? Will they be left up a creek without a paddle?

Now let's see: I am 67 and on Medicare. We cost the STRS the least of any retirees, but in about 3 short years, I will have to purchase my own Rx coverage. Oh, but if I decide to leave the STRS insurance family in 2010, I must give up my reimbursement for Medicare B. Is that supposed to be an incentive to stay with STRS insurance. It doesn't strike me that way when I read their overall plan. Then in 5 years, I will be kicked out of the STRS health plan altogether.

Maybe I should just leave at the beginning of 2010, and save myself some money and get better health care coverage with a supplement by AARP that pays 100% of costs that Medicare does not cover. It even pays the Medicare Deductibles.

Don't you think that all of the STRS staff should take a cut in bennies as well. Don't tell me that is not right for they work hard and have families to feed. Well we do to and that is our money they are using. What is good enough for us should be good enough for them? I am not blaming all of the STRS staff-only the administration and Board members, who have not been good stewards of the retirees money. We have had two board members that have warned of this downturn and other problems, but no one else would listen and some are still not listening. Tim, Mary, Mark, and Conni, WHY?

Shirlee Zerkel